Determinants of Mobile Banking Service Adoption among Commercial Bank of Ethiopia in Jima District
Keywords:
Commercial banks, Mobile banking, service adoption, determinantsAbstract
The principal objective of this study was to investigate the determinants of adoption of mobile banking among Commercial Bank of Ethiopia Jima District. Descriptive research design was used to answer the research questions. In addition, this study employed both quantitative and qualitative research methods mainly quantitative. The participants of the study were 400CBE mobile banking clients and 20 branch managers were selected through simple random sampling and purposive sampling method respectively. Besides, data collection was made through questionnaire, interview and document analysis. Most CBE have implemented Mobile banking technology. However; there is a challenge that their effort may not bring much result as it was expected. Due to the fact that the number of mobile banking users are still lagged behind. In line with this, the study was tuned to seven constructs, these are, clients’ age, awareness, income level, perceived relative advantage, perceived trust, perceived risk and service quality in determining their effect on mobile banking service adoption. Binary logistic analysis was employed to examine the magnitude of effect size of each determinant factors. Consequently, this study revealed that perceived relative advantage, awareness, income, trust and service quality had a positive and significant impact on mobile banking service adoption while age and perceived risk was found to have a negative and significant impact. The study recommended banks to emphasize in awareness creation, to project higher security when providing mobile banking services and advance infrastructures (network and electric power supply) in order to yield higher customers’ acceptance.
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